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9 August, 2021

RadNet Reports Second Quarter Financial Results, Including Record Quarterly Revenue and Adjusted EBITDA(1), and Revises Upwards 2021 Financial Guidance Ranges

  • Revenue increased 75.2% to an all-time quarterly record of $333.9 million in the second quarter of 2021 from $190.6 million in the second quarter of 2020
  • Adjusted EBITDA(1) increased 150.7% to an all-time quarterly record of $56.6 million in the second quarter of 2021 from $22.6 million in the second quarter of 2020
  • Adjusting for one-time items impacting Net Income in the quarter, Adjusted Earnings Per Share(3) was $0.27 for the second quarter of 2021; This compares with Adjusted Net Loss(3) of $(0.14) per diluted share for the second quarter of 2020
  • Aggregate procedural volumes increased 92.7%; Same-center procedural volumes increased 80.5% compared to the second quarter of 2020
  • RadNet has completed deployment of its FDA approved DeepHealth Saige-Q™ mammography AI software within its northeast and mid-Atlantic centers with positive physician reception
  • RadNet further revises full-year 2021 guidance levels to increase Revenue, Adjusted EBITDA(1) and Free Cash Flow ranges

LOS ANGELES, Aug. 09, 2021 (GLOBE NEWSWIRE) -- RadNet, Inc. (NASDAQ: RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services through a network of 353 owned and/or operated outpatient imaging centers, today reported financial results for its second quarter of 2021.

Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, “I am extremely pleased with our financial results in the second quarter. We set all-time quarterly records for Revenue and Adjusted EBITDA(1), and achieved an Adjusted EBITDA(1) margin of 17.0%, higher by 5.1% and 2.1% from the second quarters of 2020 and 2019, respectively. The strong operating performance was the result of recovering procedural volumes in combination with lower costs as a result of actions we took during the COVID-19 period in 2020 and continued cost-containment measures implemented in 2021. Additionally, improvements in our revenue cycle and cash collections have contributed to our improving results and lower DSOs. We are seeing opportunity in virtually all aspects of our multi-faceted business. We project significant growth ahead from the strategic capital investments we are making in equipment, our development efforts in artificial intelligence, the pipeline for tuck-in acquisitions and discussions surrounding new hospital health system joint ventures.”

Dr. Berger continued, “Given the positive trends we are experiencing in our business and the strong financial performance of both the first and second quarters, we have elected to further revise our guidance levels upwards. The increased 2021 guidance ranges for Revenue, Adjusted EBITDA(1) and Free Cash Flow also anticipate improved operating margins. While our revised guidance is reflective of our confidence and optimism regarding the rest of the year’s performance, we remain cognizant of the possibility of an additional surge of COVID-19 or its Delta variant in any or all of our regional markets, and are prepared to respond appropriately,” added Dr. Berger.  

Dr. Berger concluded, “On April 19th, we announced that we received FDA clearance for our DeepHealth AI mammography triage software, Saige-Q™, which is a worklist prioritization tool that enables radiologists to more effectively manage their mammography cases with the use of artificial intelligence. We are in the process of deploying this technology across our various markets and are pleased to announce that we have completed installation of this technology in our northeast and mid-Atlantic markets. We expect to complete nationwide deployment, to include our radiologists in California, by the end of the third quarter. Early feedback from our radiologists is excellent. While we are observing improved productivity, most importantly, we are providing our patients and payors with greater accuracy, fewer patient call-backs and the possibility of detecting breast disease one to two years earlier than otherwise possible. We continue to evaluate further areas of AI that can improve effectiveness, decrease costs and drive new revenue streams through providing innovative cost effective screening programs to large insurance companies who are interested in new population health models to improve patient care.”  

Second Quarter Financial Results

For the second quarter of 2021, RadNet reported Revenue of $333.9 million and Adjusted EBITDA(1) of $56.6 million. Revenue increased $143.4 million (or 75.2%) and Adjusted EBITDA(1) increased $34.0 million (or 150.7%) from the second quarter of 2020.

Adjusted Diluted Net Income Attributable to RadNet, Inc. Common Stockholders (Adjusted Earnings(3)) for the second quarter of 2021 was $14.2 million, or $0.27 per diluted share as compared with Adjusted Net Loss of $6.9 million, or $(0.14) per diluted share for the same period in 2020. Unadjusted for one-time items, Net Income Attributable to RadNet, Inc. Common Shareholders (“Net Income”) for the second quarter of 2021 was $2.9 million, or $0.05 per diluted share. This compares to Net Loss of $10.6 million, or $(0.21) per diluted share, in the second quarter of 2020. These per share values are based upon weighted average number of diluted shares outstanding of 53.1 million in the second quarter of 2021 and 50.7 million of diluted shares outstanding in the second quarter of 2020.  

Affecting Net Income in the second quarter of 2021 were certain non-cash expenses and non-recurring items including: $8.9 million of non-cash employee stock compensation expense; $268,000 of severance paid in connection with headcount reductions related to cost savings initiatives; $1.6 million gain on the disposal of certain capital equipment; $1.2 million of non-cash loss from interest rate swaps; $6.0 million expense from debt restructuring and extinguishment as a result of our recent refinancing transaction; and $812,000 of amortization of deferred financing costs and loan discount related to our existing credit facilities.

For the second quarter of 2021, as compared with the prior year’s second quarter, MRI volume increased 88.1%, CT volume increased 67.6% and PET/CT volume increased 28.8%. Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 92.7% over the prior year’s second quarter. On a same-center basis, including only those centers which were part of RadNet for both the second quarters of 2021 and 2020, MRI volume increased 73.0%, CT volume increased 54.9% and PET/CT volume increased 26.5%. Overall same-center volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 80.5% from the prior year’s same quarter.

Six Month Financial Results

For the six months ended June 30, 2021, RadNet reported Revenue of $649.2 million and Adjusted EBITDA(1) of $102.1 million. Revenue increased $177.1 million (or 37.5%) and Adjusted EBITDA(1) increased $59.2 million (or 137.8%) from the same six month period last year.

For the six month period in 2021, RadNet reported Net Income of $12.3 million, an increase of approximately $39.3 million over the first six months of 2020. Per share diluted Net Income for the first six months of 2021 was $0.23, compared to a diluted Net Loss of $(0.53) in the same six month period of 2020 (based upon a weighted average number of diluted shares outstanding of 52.9 million in 2021 and 50.5 million in 2020).

Affecting Net Income for the six month period of 2021 were certain non-cash expenses and non-recurring items including: $17.1 million of non-cash employee stock compensation expense; $551,000 of severance paid in connection with headcount reductions related to cost savings initiatives; $2.9 million gain on the disposal of certain capital equipment; $8.8 million of non-cash gain from interest rate swaps; $6.0 million expense from debt restructuring and extinguishment as a result of our recent refinancing transaction; and $2.0 million of amortization of deferred financing costs and loan discount related to our existing credit facilities.

2021 Guidance Update

RadNet amends its previously announced guidance levels as follows:

 
    
 Original Guidance
Range
Revised Guidance
Range After Q1 Results
Revised Guidance
Range After Q2 Results
Total Net Revenue$1,250 - $1,300 million$1,275 - $1,325 million$1,300 - $1,350 million
Adjusted EBITDA(1)$180 - $190 million$187 - $197 million$200 - $210 million
Capital Expenditures(a)$70 - $75 million$72 - $77 million$80 - $85 million
Cash Interest Expense$39 - $44 million$35 - $40 million$35 - $40 million
Free Cash Flow (b)(2)$60 - $70 million$70 - $80 million$75 - $85 million
    


 
(a)Net of proceeds from the sale of equipment, imaging centers and joint venture interests, and excludes New Jersey Imaging Network capital expenditures.
(b)Defined by the Company as Adjusted EBITDA(1) less Capital Expenditures and Cash Paid for Interest.

Dr. Berger highlighted, “Based upon the strong financial results in our first and second quarters and our confidence in projected performance for the remainder of the year, we have increased guidance ranges for Revenue, Adjusted EBITDA(1) and Free Cash Flow(2). Additionally, we have raised our Capital Expenditures level to reflect additional investments in growth opportunities we have identified in several of our core regional markets.”  

Conference Call for Today

Dr. Howard Berger, President and Chief Executive Officer, and Mark Stolper, Executive Vice President and Chief Financial Officer, will host a conference call to discuss its second quarter 2021 results on Monday, August 9th, 2021 at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time).

Conference Call Details:

Date: Monday, August 9, 2021
Time: 10:30 a.m. Eastern Time
Dial In-Number: 888-394-8218
International Dial-In Number: 646-828-8193

It is recommended that participants dial in approximately 5 to 10 minutes prior to the start of the 10:30 a.m. call. There will also be simultaneous and archived webcasts available at http://public.viavid.com/index.php?id=146019 or http://www.radnet.com under the “Investors” menu section and “News Releases” sub-menu of the website. An archived replay of the call will also be available and can be accessed by dialing 844-512-2921 from the U.S., or 412-317-6671 for international callers, and using the passcode 3277272.

Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are expressions of our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, and anticipated future conditions, events and trends. Forward-looking statements can generally be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Forward-looking statements in this press release include, among others, statements we make regarding response to and the expected future impacts of COVID-19, including statements about our anticipated business results, balance sheet and liquidity and our future liquidity, burn rate and our continuing ability to service or refinance our current indebtedness.

Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:

  • the ongoing impact of the COVID-19 pandemic on our business, suppliers, payors, customers, referral sources, partners, patients and employees, including (i) government’s unprecedented action regarding existing and potential restrictions and/or obligations related to citizen and business activity to contain the virus; (ii) the consequences of an economic downturn resulting from the impacts of COVID-19 and the possibility of a global economic recession; (iii) the impact of the volume of canceled or rescheduled procedures, whether as a result of government action or patient choice; (iv) measures we are taking to respond to the COVID-19 pandemic, including changes to business practices; (v) the impact of government and administrative regulation, guidance and appropriations; (vi) changes in our revenues due to declining patient procedure volumes, changes in payor mix; (vii) potential increased expenses or workforce disruptions related to our employees that could lead to unavailability of key personnel; (viii) workforce disruptions related to our key partners, suppliers, vendors and others we do business with; (ix) the impact of return to work orders in certain states in which we operate; and (x) increased credit and collectability risks;
  • the availability and terms of capital to fund our business;
  • our ability to service our indebtedness, make principal and interest payments as those payments become due and remain in compliance with applicable debt covenants, in addition to our ability to refinance such indebtedness on acceptable terms;
  • changes in general economic conditions nationally and regionally in the markets in which we operate;
  • the availability and terms of capital to fund the expansion of our business and improvements to our existing facilities;
  • our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so;
  • volatility in interest and exchange rates, or credit markets;
  • the adequacy of our cash flow and earnings to fund our current and future operations;
  • changes in service mix, revenue mix and procedure volumes;
  • delays in receiving payments for services provided;
  • increased bankruptcies among our partner physicians or joint venture partners;
  • the impact of the political environment and related developments on the current healthcare marketplace and on our business, including with respect to the future of the Affordable Care Act;
  • the extent to which the ongoing implementation of healthcare reform, or changes in or new legislation, regulations or guidance, enforcement thereof by federal and state regulators or related litigation result in a reduction in coverage or reimbursement rates for our services, or other material impacts to our business;
  • closures or slowdowns and changes in labor costs and labor difficulties, including stoppages affecting either our operations or our suppliers' abilities to deliver supplies needed in our facilities;
  • the occurrence of hostilities, political instability or catastrophic events;
  • the emergence or reemergence of and effects related to future pandemics, epidemics and infectious diseases; and
  • noncompliance by us with any privacy or security laws or any cybersecurity incident or other security breach by us or a third party involving the misappropriation, loss or other unauthorized use or disclosure of confidential information.

Any forward-looking statement contained in this current report is based on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that we may make from time to time, whether as a result of changed circumstances, new information, future developments or otherwise, except as required by applicable law.

Regulation G: GAAP and Non-GAAP Financial Information

This release contains certain financial information not reported in accordance with GAAP. The Company uses both GAAP and non-GAAP metrics to measure its financial results. The Company believes that, in addition to GAAP metrics, these non-GAAP metrics assist the Company in measuring its cash-based performance. The Company believes this information is useful to investors and other interested parties because it removes unusual and nonrecurring charges that occur in the affected period and provides a basis for measuring the Company's financial condition against other quarters. Such information should not be considered as a substitute for any measures calculated in accordance with GAAP, and may not be comparable to other similarly titled measures of other companies. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Reconciliation of this information to the most comparable GAAP measures is included in this release in the tables which follow.

CONTACTS:

RadNet, Inc.
Mark Stolper, 310-445-2800
Executive Vice President and Chief Financial Officer

 

 
RADNET, INC. AND SUBSIDIARIES 
CONDENSED CONSOLIDATED BALANCE SHEETS  
(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA) 
 June 30, 2021 December 31, 2020 
 (unaudited)   
ASSETS   
CURRENT ASSETS   
   Cash and cash equivalents$              140,852  $                     102,018  
   Accounts receivable                  157,328                          129,585  
   Due from affiliates                      6,290                              5,836  
   Prepaid expenses and other current assets                    30,449                            32,985  
      Total current assets                   334,919                          270,424  
PROPERTY, EQUIPMENT AND RIGHT-OF-USE ASSETS   
   Property and equipment, net                  435,172                          399,335  
   Operating lease right-of-use assets                  593,574                          483,661  
      Total property, equipment and right-of-use assets               1,028,746                          882,996  
OTHER ASSETS   
   Goodwill                  502,331                          472,879  
   Other intangible assets                    51,783                            52,393  
   Deferred financing costs                      2,386                              1,767  
   Investment in joint ventures                    41,375                            34,528  
   Deferred tax assets, net of current portion                    29,390                            34,687  
   Deposits and other                    41,268                            36,983  
       Total assets$           2,032,198  $                 1,786,657  
LIABILITIES AND EQUITY    
CURRENT LIABILITIES   
    Accounts payable, accrued expenses and other$              244,536                          236,684  
    Due to affiliates                    22,596                            14,010  
    Deferred revenue                    31,947                            39,257  
    Current finance lease liability                              -                              2,578  
    Current operating lease liability                    71,399                            65,794  
    Current portion of notes payable                    10,789                            39,791  
        Total current liabilities                  381,267                          398,114  
LONG-TERM LIABILITIES    
    Long-term finance lease liability                              -                                 743  
    Long-term operating lease liability                  567,674                          463,096  
    Notes payable, net of current portion                  749,079                          612,913  
    Other non-current liabilities                    34,899                            53,488  
        Total liabilities               1,732,919                       1,528,354  
EQUITY    
RadNet, Inc. stockholders' equity:   
Common stock - $.0001 par value, 200,000,000 shares authorized; 52,678,030 and 51,640,537 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively                             5   5  
    Additional paid-in-capital                  324,954                          307,788  
    Accumulated other comprehensive loss                 (22,227)                        (24,051) 
    Accumulated deficit               (105,668)                      (117,999) 
        Total RadNet, Inc.'s stockholders' equity                  197,064                          165,743  
Noncontrolling interests                  102,215                            92,560  
Total equity                  299,279                          258,303  
Total liabilities and equity$           2,032,198  $                 1,786,657  
     

 

 
RADNET, INC. AND SUBSIDIARIES 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA) 
(unaudited) 
 Three Months Ended June 30, Six Months Ended June 30, 
  2021   2020   2021   2020  
REVENUE        
         
     Service fee revenue$                      295,494  $              155,698  $                   575,071  $              404,031  
     Revenue under capitation arrangements                            38,424                      34,868                           74,166                      68,099  
Total service revenue                          333,918                    190,566                         649,237                    472,130  
     Provider relief funding                                   43                      25,475                             6,291                      25,475  
OPERATING EXPENSES        
     Cost of operations, excluding depreciation and amortization                          283,571                    194,217                         565,851                    461,635  
     Depreciation and amortization                            24,011                      21,355                           46,667                      43,289  
     (Gain) loss on sale and disposal of equipment and other                            (1,567)                       (569)                          (2,874)                          202  
     Severance costs                                 268                           859                                551                        1,076  
Total operating expenses                          306,283                    215,862                         610,195                    506,202  
INCOME (LOSS) FROM OPERATIONS                            27,678                           179                           45,333                     (8,597) 
         
OTHER INCOME AND EXPENSES        
     Interest expense                            12,171                      10,831                           24,997                      22,382  
     Equity in earnings of joint ventures                            (3,121)                       (945)                          (5,406)                    (2,900) 
     Non-cash change in fair value of interest rate hedge                                 (35)                       3,843                         (11,280)                       3,843  
     Debt restructuring and extinguishment expenses                              6,044                                -                             6,044                                -  
     Other expenses (income)                              1,658                        (115)                            1,867                        (108) 
Total other (income) expenses                            16,717                      13,614                           16,222                      23,217  
INCOME (LOSS) BEFORE INCOME TAXES                            10,961                   (13,435)                          29,111                   (31,814) 
     (Provision for) benefit from income taxes                            (2,874)                       4,475                           (7,249)                       8,856  
NET INCOME (LOSS)                              8,087                     (8,960)                          21,862                   (22,958) 
     Net income attributable to noncontrolling interests                              5,214                        1,634                             9,531                        3,994  
NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS$                          2,873  $              (10,594) $                     12,331  $              (26,952) 
         
BASIC NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS$                            0.05  $                  (0.21) $                         0.24  $                  (0.53) 
         
DILUTED NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS$                            0.05  $                  (0.21) $                         0.23  $                  (0.53) 
WEIGHTED AVERAGE SHARES OUTSTANDING        
Basic                     52,238,709               50,672,219                    52,004,653               50,483,274  
Diluted                     53,133,091               50,672,219                    52,890,561               50,483,274  
         
         

 

 
RADNET, INC. AND SUBSIDIARIES 
CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS 
(IN THOUSANDS) 
(unaudited) 
 Six Months Ended June 30, 
  2021   2020  
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income (loss)$                      21,862  $                  (22,958) 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Depreciation and amortization                          46,667                          43,289  
Amortization of operating lease assets                          36,834                          34,094  
Equity in earnings of joint ventures                         (5,406)                        (2,900) 
Amortization deferred financing costs and loan discount                            1,959                            2,163  
(Gain) loss on sale and disposal of equipment                         (2,874)                              202  
Loss on extinguishment of debt                            1,496                                    -  
Amortization of cash flow hedge                            1,845                               892  
Non-cash change in fair value of interest rate hedge                       (11,280)                           3,843  
Stock-based compensation                          17,145                            8,078  
Change in fair value of contingent consideration                            1,292                              (97) 
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in purchase transactions:    
Accounts receivable                       (28,156)                         29,018  
Other current assets                            2,963                            9,884  
Other assets                         (4,997)                        (4,257) 
Deferred taxes                            5,297                       (11,678) 
Operating leases                       (36,564)                      (30,182) 
Deferred revenue                         (7,147)                         44,384  
Accounts payable, accrued expenses and other                          17,765                          27,690  
Net cash provided by operating activities                          58,701                        131,465  
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of imaging facilities and other acquisitions                       (64,918)                        (4,188) 
Purchase of property and equipment                       (53,799)                      (64,193) 
Proceeds from sale of equipment                               500                               779  
Equity contributions in existing joint ventures                         (1,441)                                   -  
Net cash used in investing activities                     (119,658)                      (67,602) 
CASH FLOWS FROM FINANCING ACTIVITIES    
Principal payments on notes and leases payable                         (3,304)                        (1,814) 
Payments on Term Loan Debt                     (613,279)                      (21,648) 
Proceeds from issuance of new debt, net of issuing costs                        716,369                                    -  
Proceeds from payment protection plan                                    -                            4,023  
Proceeds from revolving credit facility                        128,300                        250,900  
Payments on revolving credit facility                     (128,300)                    (250,900) 
Proceeds from issuance of common stock upon exercise of options                                 26                                    -  
Net cash provided by (used in) financing activities                          99,812                       (19,439) 
EFFECT OF EXCHANGE RATE CHANGES ON CASH                              (21)                               (6) 
NET INCREASE IN CASH AND CASH EQUIVALENTS                          38,834                          44,418  
CASH AND CASH EQUIVALENTS, beginning of period                        102,018                          40,165  
CASH AND CASH EQUIVALENTS, end of period$                    140,852  $                    84,583  
     
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION   
Cash paid during the period for interest$                      13,774  $                    22,826  
     

 

RADNET, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC. COMMON SHAREHOLDERS TO ADJUSTED EBITDA(1)
(IN THOUSANDS)

 
       
       
   Three Months Ended 
   June 30, 
    2021   2020  
       
       
Net Income (Loss) Attributable to RadNet, Inc. Common Shareholders $2,873  $(10,594) 
Plus Interest Expense  12,171   10,831  
Plus Provision (Benefit) for Income Taxes  2,874   (4,475) 
Plus Depreciation and Amortization  24,011   21,355  
Plus Other Expenses (Income)  1,658   (115) 
Plus Severance Costs  268   859  
Plus (Gain) on Sale of Equipment  (1,567)  (569) 
Plus Debt Restructuring and Loss on Extinguishment Expenses  6,044   -  
Plus Non-cash Change in Fair Value of Interest Rate Hedge  (35)  3,843  
Plus Other Adjustment to Joint Venture Investment  (565)  -  
Plus Non Cash Employee Stock Compensation  8,897   1,456  
 Adjusted EBITDA(1) $ 56,629  $ 22,591  
       
       
   Six Months Ended 
   June 30, 
    2021   2020  
       
       
Net Income (Loss) Attributable to RadNet, Inc. Common Shareholders $12,331  $(26,952) 
Plus Interest Expense  24,997   22,382  
Plus Provision (Benefit) for Income Taxes  7,249   (8,856) 
Plus Depreciation and Amortization  46,667   43,289  
Plus Other Expenses (Income)  1,867   (108) 
Plus Severance Costs  551   1,076  
Plus (Gain) Loss on Sale of Equipment  (2,874)  202  
Plus Debt Restructuring and Loss on Extinguishment Expenses  6,044   -  
Plus Non-cash Change in Fair Value of Interest Rate Hedge  (11,280)  3,843  
Plus Other Adjustment to Joint Venture Investment  (565)  -  
Plus Non Cash Employee Stock Compensation  17,145   8,078  
 Adjusted EBITDA(1) $ 102,132  $ 42,954  
       

 

 
    
PAYOR CLASS BREAKDOWN
    
    
  Second Quarter   
  2021   
      
      
    
Commercial Insurance 57.7%  
Medicare 21.4%  
Capitation 11.5%  
Medicaid 2.7%  
Workers Compensation/Personal Injury 3.2%  
Other 3.6%  
      
      
Total 100.0%  
    

  

 
          
RADNET PAYMENTS BY MODALITY 
          
          
  Second Quarter Full Year Full Year Full Year 
  2021 2020 2019 2018 
          
MRI 36.7% 35.4% 35.8% 35.2% 
CT 17.6% 17.6% 16.9% 16.5% 
PET/CT 5.5% 6.0% 5.6% 5.7% 
X-ray 7.2% 7.3% 8.1% 8.4% 
Ultrasound 12.6% 12.3% 12.4% 12.2% 
Mammography 14.6% 15.7% 15.2% 15.8% 
Nuclear Medicine 1.1% 1.0% 1.0% 1.1% 
Other 4.6% 4.7% 4.9% 5.1% 
  100.0% 100.0% 100.0% 100.0% 
          

Footnotes

(1) The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, each from continuing operations and adjusted for losses or gains on the sale of equipment, other income or loss, debt extinguishments and non-cash equity compensation. Adjusted EBITDA includes equity earnings in unconsolidated operations and subtracts allocations of earnings to non-controlling interests in subsidiaries, and is adjusted for non-cash or extraordinary and one-time events taken place during the period.

Adjusted EBITDA is reconciled to its nearest comparable GAAP financial measure. Adjusted EBITDA is a non-GAAP financial measure used as analytical indicator by RadNet management and the healthcare industry to assess business performance, and is a measure of leverage capacity and ability to service debt. Adjusted EBITDA should not be considered a measure of financial performance under GAAP, and the items excluded from Adjusted EBITDA should not be considered in isolation or as alternatives to net income, cash flows generated by operating, investing or financing activities or other financial statement data presented in the consolidated financial statements as an indicator of financial performance or liquidity. As Adjusted EBITDA is not a measurement determined in accordance with GAAP and is therefore susceptible to varying methods of calculation, this metric, as presented, may not be comparable to other similarly titled measures of other companies.

(2) As noted above, the Company defines Free Cash Flow as Adjusted EBITDA less total Capital Expenditures (whether completed with cash or financed) and Cash Interest paid. Free Cash Flow is a non-GAAP financial measure. The Company uses Free Cash Flow because the Company believes it provides useful information for investors and management because it measures our capacity to generate cash from our operating activities. Free Cash Flow does not represent total cash flow since it does not include the cash flows generated by or used in financing activities. In addition, our definition of Free Cash Flow may differ from definitions used by other companies.

Free Cash Flow should not be considered a measure of financial performance under GAAP, and the items excluded from Adjusted EBITDA should not be considered in isolation or as alternatives to net income, cash flows generated by operating, investing or financing activities or other financial statement data presented in the consolidated financial statements as an indicator of financial performance or liquidity. As Adjusted EBITDA is not a measurement determined in accordance with GAAP and is therefore susceptible to varying methods of calculation, this metric, as presented, may not be comparable to other similarly titled measures of other companies.

 
RADNET, INC. AND SUBSIDIARIES
SCHEDULE OF ADJUSTED EARNINGS AND EARNINGS PER SHARE (3)
(IN THOUSANDS EXCEPT SHARE DATA)
(unaudited)
         
         
     Three Months Ended 
     June 30, June 30, 
      2021   2020  
         
NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC.     
  COMMON STOCKHOLDERS $2,873  $(10,594) 
         
         
  Add COVID-19-related stock awards to front-line employees 6,503   -  
  Add non-cash revaluation of DeepHealth acquisiton shares 1,093   -  
  Add non-cash impact of cash flow hedges (i)  1,210   4,735  
  Add severance costs  268   859  
  Add debt restructuring and extinguishment expenses 6,044   -  
   Total adjustments - loss (gain)  15,118   5,594  
  Subtract tax impact of Adjustments (ii)  (3,754)  (1,863) 
   Tax effected impact of adjustments  11,364   3,731  
         
TOTAL ADJUSTMENT TO NET INCOME ATTRIBUTABLE    
  TO RADNET, INC. COMMON SHAREHOLDERS 11,364   3,731  
         
ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC.  14,237   (6,863) 
  COMMON STOCKHOLDERS     
         
WEIGHTED AVERAGE SHARES OUTSTANDING    
  Diluted  53,133,091   50,672,219  
         
ADJUSTED DILUTED NET INCOME PER SHARE     
  ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS$0.27  $(0.14) 
         
(i) Impact is the combination of (a) the gain in fair value of the hedges during the quarter of $35,000 in 2021 and  
loss of $3,843 in 2020 and (b) the amortization of the accumulation of the changes in fair value out of Other Comprehensive Income 
that existed prior to the hedges becoming ineffective of $1,245,000 in 2021 and $892,000 in 2020.   
(ii) Tax effected using 24.83% blended federal and state effective tax rate for 2021 and 33.31% for 2020.   
         

9 August, 2021